- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Release of discounted contingent consideration
Hi, IFRS 9 says any remeasurements should go through profit and loss. So if the discounted provision is partially reduced, does part of the release go through interest/finance costs and the rest through other income for example ? If it wasn’t at present value there would be no element going through interest?
If consideration is to be paid in the future, it will always be discounted.
The key thing to state in the exam is that the unwinding of the discount / any other changes will be in the P&L – I think they would normally be in finance costs – but, as long as you say P&L, that will be OK.